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The owner of a local store represents his short run production below. Labor is (L) and represents the amount of workers hired, Q is the number of bagels produced per day. The current wage is $100 per day and the firm has $200 per day in fixed costs.
If L is 1 and Q is 25, what is AP, MP, TVC, TFC, TC, AVC, AFC, and ATC?
how do you set these up?
The weights of a population of parts made by a certain machine are normally distributed with a mean of ten pounds and a standard deviation of two pounds. What is the probability that a part of drawn at random from the machine weighs between 8 and..
Chell's demand function is P(ch) = 5-q(ch). Gordon's demand function is P(g)= 3-q(g). Draw the aggregate demand curve. What is the consumer surplus with the price is $2?
Statements Firm will finance a proposed investment by issuing new securities while maintaining its optimal capital structure of 60% debt and 40% equity. The firm can issue bonds at price of $950.00 before $15 flotation costs.
An auto dealership estimates that its demand curve has an elasticity of 2.78. If it wishes to increase sales by 12%, by how much should it decrease price What will happen to revenue (rise or fall) If instead it raises price by 20%, what is the per..
Suppose you lend $20,000 at a 7.5% interest rate to a friend for one year. At the time of the loan your expected rate of inflation is 2.5% while your friend's expected rate of inflation is 2.9%. However, by the end of that year prices have increas..
Here once again is the basic data on revenue and costs for each firm when Acme U.S. makes and sells a car. The table shows the initial price that Acme U.S. pays Acme Mexico, $3,000 per engine. In some problems, you will be asked to consider how thi..
A local bank advertised the following information: interest 6.89% - effective annual yield 7.128% . no mention was made of the interest period on the advertisement. Can you figure out the compounding scheme used by the bank
Some friends of yours have just had a child. Thinking ahead, and realizing the power of compound interest, they are considering investing for their child's college education, which will begin in 18 years. Assume that the cost of a college educatio..
Each month, an airline sells 1,500 business-class tickets from London to Paris at $200 a ticket, and 6,000 economy-class tickets at $80 a ticket. Use this information to construct the demand curves of business travelers and tourists respectively, ..
Suppose the government places a $15 per carton excise tax on cigarettes in an effort to reduce smoking. Cigarette producers are required to pay this tax out of their revenues. Draw the supply and demand graph based on the original supply and deman..
a. What is the optimal number of lures and guitar picks for Anthony to purchase How much utility does this combination bring him b. If the price of guitar picks doubles to $2, how much income must Anthony have to maintain the same level of utility
in a survey of 15 accountants, 10 favored present-value accounting, 6 favored a shortening of the allowable depr. period and 3 recommended no change. suppose one of the accountants involved in the surevey is selected at random.
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